| 11. | Property, plant and equipment |
| Cost | Balance as at 1 January 2017 |
Additions | Disposals | Transfers | Impairment expenses/ (reversals) |
Effects of movements in exchange rates |
Transfer from investment property |
Balance as at 31 December 2017 |
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Network infrastructure (All operational) |
13,897,308 | 574,301 | (1,009,922 | ) | 1,907,022 | — | 111,419 | — | 15,480,128 | |||||||||||||||||||||||
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Land and buildings |
519,702 | 162,206 | (1,340 | ) | 39,130 | — | 1,766 | 64,594 | 786,058 | |||||||||||||||||||||||
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Equipment, fixtures and fittings |
617,732 | 117,087 | (10,854 | ) | 2,209 | — | 2,028 | — | 728,202 | |||||||||||||||||||||||
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Motor vehicles |
34,136 | 4,415 | (1,719 | ) | — | — | 384 | — | 37,216 | |||||||||||||||||||||||
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Leasehold improvements |
311,761 | 7,400 | (5,041 | ) | 486 | — | 261 | — | 314,867 | |||||||||||||||||||||||
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Construction in progress |
566,523 | 2,063,329 | — | (1,949,000 | ) | (14,535 | ) | 5,977 | — | 672,294 | ||||||||||||||||||||||
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Total |
15,947,162 | 2,928,738 | (1,028,876 | ) | (153 | ) | (14,535 | ) | 121,835 | 64,594 | 18,018,765 | |||||||||||||||||||||
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Accumulated depreciation |
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Network infrastructure (All operational) |
6,843,580 | 1,353,419 | (990,719 | ) | — | 23,589 | 96,690 | — | 7,326,559 | |||||||||||||||||||||||
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Land and buildings |
159,351 | 26,295 | (221 | ) | — | 1,482 | 645 | 22,366 | 209,918 | |||||||||||||||||||||||
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Equipment, fixtures and fittings |
497,606 | 48,393 | (8,202 | ) | — | 115 | 1,915 | — | 539,827 | |||||||||||||||||||||||
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Motor vehicles |
30,252 | 2,276 | (1,642 | ) | — | — | 420 | — | 31,306 | |||||||||||||||||||||||
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Leasehold improvements |
220,668 | 29,138 | (4,417 | ) | — | — | 358 | — | 245,747 | |||||||||||||||||||||||
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Total |
7,751,457 | 1,459,521 | (1,005,201 | ) | — | 25,186 | 100,028 | 22,366 | 8,353,357 | |||||||||||||||||||||||
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Net book amount |
8,195,705 | 1,469,217 | (23,675 | ) | (153 | ) | (39,721 | ) | 21,807 | 42,228 | 9,665,408 | |||||||||||||||||||||
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Depreciation expenses for the years ended 31 December 2017, 2016 and 2015 amounting to TL 1,499,242, TL 1,278,009 and TL 1,112,039, respectively include impairment losses and are recognized in cost of revenue.
Impairment losses on property, plant and equipment for the years ended 31 December 2017, 2016 and 2015 are TL 39,721, TL 43,198 and TL 18,567, respectively and are recognized in depreciation expenses.
Capitalization rates and amounts other than borrowings made specifically for the purpose of acquiring a qualifying asset are 10.0%, 9.9% and 9.7%, TL 66,513 and TL 76,899 and TL 75,315 for the years ended 31 December 2017, 2016 and 2015 respectively.
Impaired network infrastructure mainly consists of damaged or technologically inadequate mobile and fixed network infrastructure investments.
The network infrastructure mainly consists of mobile and fixed network infrastructure investments.
| Cost | Balance as at 1 January 2016 |
Additions | Disposals | Transfers | Impairment expenses/ (reversals) |
Effects of movements in exchange rates |
Balance as at 31 December 2016 |
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Network infrastructure (all operational) |
11,302,326 | 615,041 | (518,827 | ) | 2,312,011 | — | 186,757 | 13,897,308 | ||||||||||||||||||||
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Land and buildings |
389,366 | 26,603 | (32 | ) | 102,311 | — | 1,454 | 519,702 | ||||||||||||||||||||
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Equipment, fixtures and fittings |
586,463 | 37,545 | (19,291 | ) | 10,079 | — | 2,936 | 617,732 | ||||||||||||||||||||
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Motor vehicles |
33,676 | 2,710 | (2,946 | ) | 71 | — | 625 | 34,136 | ||||||||||||||||||||
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Leasehold improvements |
306,176 | 5,663 | (374 | ) | — | — | 296 | 311,761 | ||||||||||||||||||||
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Construction in progress |
1,005,358 | 1,979,449 | (454 | ) | (2,426,303 | ) | — | 8,473 | 566,523 | |||||||||||||||||||
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Total |
13,623,365 | 2,667,011 | (541,924 | ) | (1,831 | ) | — | 200,541 | 15,947,162 | |||||||||||||||||||
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Accumulated depreciation |
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Network infrastructure (all operational) |
5,976,699 | 1,139,343 | (501,719 | ) | — | 42,682 | 186,575 | 6,843,580 | ||||||||||||||||||||
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Buildings |
140,627 | 17,395 | — | — | 488 | 841 | 159,351 | |||||||||||||||||||||
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Equipment, fixtures and fittings |
462,618 | 47,001 | (15,229 | ) | — | 28 | 3,188 | 497,606 | ||||||||||||||||||||
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Motor vehicles |
29,704 | 2,723 | (2,926 | ) | — | — | 751 | 30,252 | ||||||||||||||||||||
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Leasehold improvements |
192,223 | 28,349 | (374 | ) | — | — | 470 | 220,668 | ||||||||||||||||||||
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Total |
6,801,871 | 1,234,811 | (520,248 | ) | — | 43,198 | 191,825 | 7,751,457 | ||||||||||||||||||||
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Net book amount |
6,821,494 | 1,432,200 | (21,676 | ) | (1,831 | ) | (43,198 | ) | 8,716 | 8,195,705 | ||||||||||||||||||
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Leased assets
The Group leases equipment and intangible assets under a number of finance lease agreements. As of 31 December 2017, The Group did not acquire any property, plant and equipment and intangibles assets without cash outflows through beneficial price option to purchase the equipment and intangible assets (31 December 2016: 36,322 TL).
As at 31 December 2017, net book amount of fixed assets acquired under finance leases amounted to TL 170,249 (31 December 2016: TL 89,425).